In our current baseline scenario, economic growth in India will go down sharply in 2020 to 3.6%. In this scenario, we assume that the virus will spread further and also affect India. We expect the INR to continue weakening on the back of ongoing dollar strengthen over the next three months to levels well above 75 and would recover to 73-74 by year end. Exiting recently hedged export transactions and covering near to mid-term Imports is well advised.After the US Federal Reserve relaunched its facility to fund short-term corporate loans that they used during the 2008 financial crisis, the European Central Bank followed suit by introducing another stimulus package to revive the struggling economy. Higher borrowing costs for Italy, the country that is in lockdown for nearly a month, prompted the central bank to consider purchase of up to $820 bln in government and private sector bonds as well as commercial paper by the end of this year. While traders are expected to place bets against the Indian currency, the RBI may step in to prevent sharp depreciation in the rupee by intervening in the spot market around 75.00 a dollar. However, some exporters, seeking to take advantage of higher dollar/rupee levels before they close their books at the end of this financial year, may also sell the US unit.